10 June 2025

Greens propose new tax on big business, accuse government of eyeing cuts

| Nicholas Ward
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A woman and a man standing outside the Legislative Assembly building

“We are in a situation where we want to see some of the biggest corporations in Australia increasing the share that they pay to help operate the city that they live in,” said ACT Greens leader Shane Rattenbury, alongside deputy leader Jo Clay. Photo: Nicholas Ward.

The ACT Greens have announced a proposal for a 4 per cent tax increase on businesses with a national payroll of more than $200 million, as the party accuses Labor of looking to cut essential services in the city.

Party leader Shane Rattenbury, alongside deputy Jo Clay, announced the proposal on Friday at a press conference outside the Legislative Assembly.

“The Greens are launching a measured but ambitious plan to ensure there are no cuts to essential services in this year’s budget,” Mr Rattenbury said.

“We are in a situation where we want to see some of the biggest corporations in Australia increasing the share that they pay to help operate the city that they live in.”

The Greens’ proposal would raise $106 million and affect less than 1 per cent of businesses, according to the party’s estimates.

Mr Rattenbury said the Greens had aired this proposal before the budget as the party was concerned that Labor was foreshadowing cuts.

“We know the ACT budget is under pressure, and the Labor Government has been talking about the need for tough decisions, for difficult decisions, but we are really concerned to avoid a situation where Canberra’s most needy are missing out on essential services just to balance the books,” he said.

Australia Institute senior economist Matt Grudnoff said his organisation welcomed the proposal.

“Taxing big business is an important way to fund essential spending on hospitals, schools, aged care, and public housing,” Mr Grudnoff said.

”The ACT faces many challenges, and this additional revenue will make a real difference in the lives of the people of the ACT.”

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However, Mr Grudnoff said the ACT had a unique challenge when it came to payroll tax, which needed wider action to address.

“The Federal Government doesn’t have to pay payroll tax … for most states and territories … the federal workforce makes up less than 2 per cent of their workforce … in the ACT, a quarter of the workforce [is federal],” he said.

“The ACT Government still has to provide health services and education services, and aged-care services, and all the other kinds of services to these federal public servants. Effectively, the Federal Government is not paying its fair share.”

smiling man

“While big business may threaten to leave, the reality is these are empty threats. The ACT has many valuable customers that these large businesses want to sell to,” said the Australia Institute’s Matt Grudnoff. Photo: Supplied.

The tax rate on large companies is already set to increase on 1 July with a 0.5 per cent rise for businesses with a payroll between $50 and $100 million and a 1 per cent jump on those exceeding $100 million.

The Greens’ proposal would apply to only a small number of companies, such as the supermarket and airline duopolies, Wesfarmers, and major banks. Mr Grudnoff said there was little downside to such taxes.

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“While big business may threaten to leave, the reality is these are empty threats. The ACT has many valuable customers that these large businesses want to sell to,” he said.

The Territory Government has come under criticism in recent years for growing debt in the capital. But Greens deputy leader Jo Clay said that even if the budget needed balancing, there was more than one option.

“It’s essential that we make sure these big corporations pay their fair share,” she said.

”We know a lot of people are struggling with the basics of putting food on the table. We cannot make short-term decisions to cut services and cut environmental spending when we have other options, and the best option is to make sure that these big corporations are paying their fair share of tax.”

To pass a budget, Labor will need support from other parties or independents. Mr Rattenbury said they would not be a rubber stamp for a Labor budget.

“We were very clear last October, November, that in the negotiations with the Labor Party, we were not able to strike an agreement that prioritises some of these key issues,” he said.

“Prioritise environmental funding, better funding for public and community housing, for key community services. We were not able to be part of that government, but nonetheless, we do hold the balance of power in this Assembly.”

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Greens only approach is to tax tax tax. No wonder they got wiped out at a federal level and lost seats at the last Territory election. Have they not learnt from their mistakes?

How to be successful in a small business in Australia – start with a big one

GrumpyGrandpa9:10 pm 10 Jun 25

The Greens’ answer to everything – increase a tax or introduce a new tax.

HiddenDragon8:42 pm 10 Jun 25

The Federal Government doesn’t have to pay payroll tax … for most states and territories … the federal workforce makes up less than 2 per cent of their workforce … in the ACT, a quarter of the workforce [is federal],”

That reality is one of the many factors which the Commonwealth Grants Commission takes into account in determining the share of GST revenue for each state and territory – and the ACT thus benefits accordingly.

The CGC also, for instance, factors into its calculations that the ACT cannot raise any revenue from mining royalties – so ACT-based climate crusaders might want to think twice next time they are cheering on campaigns against mining projects in other parts of the country.

The more pressing issue is the funding the ACT receives to provide services for de-facto/part-time Canberrans who live across the border in NSW – long the subject of wrangling between the two jurisdictions.

At the Press Club today, Albanese did quite a good job of pretending to be a Canberran, so with Labor now comfortably ensconced in the ACT, NSW and federally, this might be the time for another serious push by the ACT for a fairer deal – particularly with ACT planning and housing policies driving more potential Canberrans into NSW.

Yes and then everything will be even more expensive in Canberra. The Government needs to stop spending money so wastefully- the light rail is the main cause but not the only one.

Why don’t they petition the governmen to pay some amount for payrole tax.

They’re already going easy on victoria increasing their GST income due to covid lockdown debt.

Paul Holbrook3:05 pm 10 Jun 25

Big business will survive as they can afford better tax advisors. Small businesses, the biggest employers in the country, are failing at an alarming rate. When will these politicians and the public sector realize that private enterprise generate the revenue that pay their salaries and government services.

The greens showing once again that they are clueless. The more we up the tax rate, the more they will hide profits. Federal Labor has the right idea, track where the profits are being hidden and legislate against that. Greens ideas are for people with smooth brains.

Capital Retro10:08 am 10 Jun 25

This won’t happen as thanks to the Labor/Green on-going hate of big businesses, there will soon only be small businesses left in Australia.

Paul Holbrook2:51 pm 10 Jun 25

Big business will survive as they can afford good tax advisors. Small businesses are the ones falling

Greens should first take responsibility for the budget they broke. The ACT budget was in surplus in 2011-12, then Greens became a part of the ACT Government in 2012, and since then the budget was in deficit every single year. Greens jumped the sinking ship last year when the deficit reached $1 billion and the debt reached $13 billion.

When Greens joined the Labor government they made this pledge “The parties confirm their commitment to fiscal responsibility and the maintenance of a balanced budget through the economic cycle.” Despite breaking that pledge, and then breaking the budget, Greens are still demanding Labor adopt the economic policies of the Greens.

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